What does the new ‘material information’ on property listings mean for landlords?

‘Material information’ is “information which the average consumer needs, according to the context, to take an informed transactional decision”. (Consumer Protection from Unfair Trading Regulations 2008)

For more than 15 years, sales and letting agents have had a legal obligation not to omit material information from property listings. The intention is that buyers and tenants should have all the information about a property that could affect their decision on whether to go ahead, before they move forward with a transaction.

But this has been a grey area until recently, because ‘material’ was never defined. So, even when agents included everything they knew about a property on the listing, there may have been important pieces of information they simply weren’t aware of, such as:

• Rights of way over land that could affect enjoyment of the property
• Restrictive covenants, preventing residents from keeping pets
• Parking restrictions or parking permit requirements

That meant tenants and buyers only found out about material information once they’d already spent time and money on the legal buying or renting process. If the issue was significant, transactions would often either need to be renegotiated or fall through.

What are the new rules?

Over the past few years, the National Trading Standards Estate and Letting Agency Team (NTSELAT) has been working alongside industry leaders and the UK’s major property portals to clarify the material information that should be included in a property listing. The full programme of changes was published at the end of November 2023.

The new NTSELAT guidance makes it clear what information agents need to obtain from landlords and sellers, and should ensure tenants and buyers know all relevant factors before agreeing to rent or buy a property.

Although this is guidance, it is being considered best practice and the new industry standard. Property listing portals, including Rightmove, Zoopla and OnTheMarket, have been updating their listings software to accommodate the new information.

What information should your estate and letting agent be asking you for?

The guidance is divided into three parts, with separate guides for lettings and sales. As a landlord, this is the information your agent should be including on a property you are buying or letting:-

Part A covers essential basic information:

• Council Tax or Domestic Rates
• Rent
• Details of any deposits payable

Part B is information that must be established for all properties:

• The property type and construction materials
• The number and type of rooms, including measurements
• Utilities - that’s information about the supply of water, electricity and broadband; the heating system; sewerage arrangements and mobile phone signal/coverage
• Parking – the availability of parking at the property; whether a permit is required; whether there is an EV charging point

Part C is information that only needs to be provided if the property is affected by a specific issue:

• Building safety – e.g. if there is any unsafe cladding or risk of collapse of any part of the property
• Rights and restrictions that could affect the tenant’s use of the property – e.g. lease restrictions, such as no pets; restrictions on running a business from home; any public right of way over the land
• Any known planning permission and development proposals
• Property adaptations – e.g. ramps for step-free access
• Risk of flooding and erosion
• Coalfield or mining area

If an agent you’re dealing with doesn’t ask you for this information, they’re probably not a member of one of the industry’s self-regulating bodies, such as Propertymark. In that case, it’s advisable to find another agent that does operate to best practice industry standards.

At Smart Lettings, we’re currently developing our sales and lettings systems and processes to incorporate all the changes.

How the changes benefit you

Of course, this change to what’s included in property listings is good news for buyers and tenants, who will now have much more complete information about the homes they’re considering. But it also benefits you as a landlord in two key ways:

1. It reduces the risk of fall-throughs when buying and void periods when renting.
2. You may sell or let your property more quickly, as buyers and tenants will have all the material information up front, before they even view.

For more details, take a look at this helpful guide for landlords and sellers, produced by NTSELAT, which lists the minimum information required and where you can find it.

And if you have any further questions, we’re always here to help. Contact a member of the team by calling 01656657033 or email info@smart-lettings.co.uk